The hardest things about it are (A) deciding on what to write about, and (B) spending the time writing and editing. Besides that, the technical part is amazingly simple, but there are a few small things to watch out for. Ultimately however, this is an exciting time to try on your author hat and see where it can take you!
Tools
You can use all sorts of software products to "author" or write your e-book. I prefer Microsoft Word, but some authors find that absurd. However, you can make some adjustments in Word to avoid the pitfalls that many Word-haters cite as reasons to avoid using it. I'll touch on that under "Tricks" later in this article.The other "tool" you'll need is something to convert from the writing/editing output into the publishing format. Most e-book readers can open EPUB and MOBI files, however, Amazon Kindle won't open EPUB. There are quite a few other formats as well, but EPUB and MOBI are the most common. (for a comparison/explanation, check this out).
Amazon actually converts your content into their own AZW if you choose to lock down the digital publishing rights (something you should do if you don't want people making copies of your book and sharing it for free). I have tried several such products, even Amazon's own KindleGen, but I've settled on Calibre, which is a free converter and library manager for Windows, Mac and Linux.
KindleGen is also nice, but it's a bare-bones converting tool. In fact, it has no graphical interface (GUI), it's a command-line tool, but fortunately it's not difficult to use. The download from Amazon is a .ZIP file, so you need to extract the kindlegen.exe file out from the .ZIP file in order to use it. After you extract it to a folder, right-click on that folder while holding down your SHIFT key, and select "Open Command prompt here". You can also click the Start button, and type CMD and press Enter, then use the age-old DOS command "CD" to switch to the folder, then type "kindlegen" to view the usage information. I figure if you can suffer through my idiotic ramblings this far, you're probably capable of figuring out the rest from here. :)
Tricks
As I mentioned above, if you want to use Microsoft Word to write your book, you'll want to make a few changes to formatting to avoid problems during the conversion process. For Word 2010, click the "File" tab, click "Options", select "Proofing", and click the "AutoCorrect Options..." button.Select the "AutoFormat As You Type" tab, and de-select (disable/un-check) the following options:
- "Straight quote" with "smart quotes"
- Fractions (1/2) with fraction character(1/2)
- Hypens (--) with dash (--)
- *Bold* and _italic_ with real formatting
Tips
- You need to become familiar with the end-user experience. It helps to understand what your readers (customers) will see when they pay hard-earned money for your works.
- You need a means for testing the output prior to publishing it for purchase. You'd be surprised how many times you will copy and re-copy your e-book to the device to fix formatting errors, and make corrections that you only happen to see on the reader device.

